Answer to the Airlines' Problems

[Please Hire Me]

As I've mentioned in other threads, I am not expert on the aviation industry, but looking at the history of the airlines, very, very few have been profitable. What do you think the answer is? Re-regulation? Less regulation??? I would like to hear your input. THanks.

 

[310]

not more regulation for sure- just need to get all of the people out of this country that are causing this security nightmare- expel the muslims and all the other illegals- go ahead and arm the pilots but include the cargo guys- make the INS do their job and keep those that hate us out- scrap NAFTA- employ Americans so they can afford airline tickets and so the sales people and management in their companies need to travel- check ALL cargo containers for bombs, SAMs -- and if that slows the importation of goods; so what. The US is a net importer anyway so we will have to make more of our stuff here with the net effect being some walmart employees can leave $7/hr jobs and go to work in manufacturing making more- so they buy more stuff and travel more..... a good cycle. Stop making workers in the US compete with third world employees for jobs. AMERICA FIRST!!!!!!!
Let the free market rule-in the US- don't make us compete with the third world.

 

[Timebuilder]

It is my understanding that commercial flying is less profitable than it once was, which wasn't much better.

As regualtions increased, driven by "bad events", the costs kept climbing in aircraft operations. Add to that the skyrocketing cost of insurance, brought on by an increasingly litigious society. Last, the availability of rock-bottom fares over the internet, which had previously been unknown, drove down revenues.

In short, customers aren't willing to pay enough to keep all of our airlines profitable, and that was true for most operators, even before 9-11. When a situation like this happens, attrition occurs in the industry. Carriers die out, and younger, more cost effective carriers move in. The new cariers have less retirement costs, lower labor costs, and smart young enterpreneur owners. Finally, when enough carriers have restructured or gone out of business, the public has reduced choices, which allows fares to rise to a point of equilibrium. That balance point promises to be lower than many expect.

This particular business cycle has been very hard on aviation, and when it rebounds, there will be several marginally profitable carriers, but it won't be what we all knew it to be in the 90's.

 

[mar]

The airlines made their bed...

...now they can sleep in it.

And I don't want to hear any belly-aching about Sept 11th. All of this was well on it's way. Sept 2001 only accelerated it--anybody who has any idea what they're talking about will agree.

What does this industry need to be profitable?

More long-term vision and greater responsibility on the behalf of both management and unions.

They both blew it.